Short-run producer surplus can be caluculated by integration as (where q* is the firm's profit maximizing output level and MC(q)is its marginal cost function)
A) $\int _ { 0 } ^ { q ^ { * } } M C ( q ) d q - p$ .
B) $\int _ { 0 } ^ { q ^ { * } } [ M C ( q ) - p q ] d q$ .
C) $\int _ { 0 } ^ { q ^ { * } } p q - M C ( q ) d q$ .
D) $\int _ { 0 } ^ { q ^ { * } } [ p - M C ( q ) ] d q$ .

Question

Short-run producer surplus can be caluculated by integration as (where q* is the firm's profit maximizing output level and MC(q)is its marginal cost function)
A) $\int _ { 0 } ^ { q ^ { *  } } M C ( q ) d q - p$ .
B) $\int _ { 0 } ^ { q ^ { * } } [ M C ( q ) - p q ] d q$ .
C) $\int _ { 0 } ^ { q ^ { * } } p q - M C ( q ) d q$ .
D) $\int _ { 0 } ^ { q ^ { * } } [ p - M C ( q ) ] d q$ .

Quizplus · Accepted Answer

Producer surplus is the area above the marginal cost curve and below the price level, which is calculated by integrating the difference between price and marginal cost over the quantity produced.

Short-Run Producer Surplus Can Be Caluculated by Integration as (Where ∫0q∗MC(q)dq−p\int _ { 0 } ^ { q ^ { * } } M C ( q ) d q - p∫0q∗​MC(q)dq−p

Short-Run Producer Surplus Can Be Caluculated by Integration as (Where $\int _ { 0 } ^ { q ^ { * } } M C ( q ) d q - p$